SB0229

SENATE BILL 229

50th legislature - STATE OF NEW MEXICO - first session, 2011

INTRODUCED BY

Eric G. Griego

AN ACT

RELATING TO BANKING; ALLOWING STATE BANKS AND CREDIT UNIONS TO CONDUCT SAVINGS PROMOTION RAFFLES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1. Section 58-1-53 NMSA 1978 (being Laws 1963, Chapter 305, Section 42, as amended) is amended to read:

"58-1-53. GENERAL CORPORATE POWERS.--

A. A state [banks shall have] bank has:

[A.] (1) all the powers provided and conferred on [them] it in the Banking Act and such general corporate powers as are appropriate to its purpose;

[B.] (2) the power to act as a fiduciary in any capacity after proper qualifications under the Banking Act and if authorized by its articles of incorporation or any amendment thereto;

[C.] (3) perpetual succession by its corporate name unless a limited period of duration is stated in its articles of incorporation;

[D.] (4) the power to sue and be sued in any court of law or equity;

[E.] (5) the power to make and use a common seal and alter the same at pleasure;

[F.] (6) the power to appoint such officers and agents as the business of the corporation shall require and to allow them suitable compensation; [and]

(7) the power to conduct a savings promotion raffle; and

[G.] (8) the power to make contributions to the extent authorized, approved or ratified by action of the board of directors of the corporation, except as otherwise specifically provided or limited by its articles of incorporation or its bylaws, [or] by resolution duly adopted by its stockholders or by statute.

B. As used in this section, "savings promotion raffle" means a promotion offered by a financial institution authorized to do business in New Mexico in which the sole consideration required for a chance of winning designated prizes is the deposit of at least a specified amount of money into a savings account or other savings program offered by the financial institution. Consideration shall not be deemed to have been given in a savings promotion raffle as long as each ticket has an equal chance of being drawn. Interest rates or fees associated with a savings promotion raffle may be set at a rate necessary to partially offset the cost of cash prizes."

SECTION 2. Section 58-11-18 NMSA 1978 (being Laws 1987, Chapter 311, Section 18, as amended) is amended to read:

"58-11-18. POWERS OF CREDIT UNIONS.--

A. In addition to the powers authorized elsewhere in the Credit Union Act, a credit union may:

[A.] (1) enter into contracts of any nature;

[B.] (2) sue and be sued;

[C.] (3) adopt, use and display a corporate seal;

[D.] (4) acquire, lease, hold, assign, pledge, hypothecate, sell and discount or otherwise dispose of property or assets, either in whole or in part, necessary or incidental to its operations;

[E.] (5) lend funds to members;

[F.] (6) borrow from any source; provided that a credit union shall have prior approval of the director before borrowing in excess of an aggregate of fifty percent of its capital;

[G.] (7) purchase the assets of another credit union, subject to the approval of the director;

[H.] (8) offer various financial services approved by the director;

[I.] (9) hold membership in other credit unions organized under the Credit Union Act, the Federal Credit Union Act or other acts and in associations and organizations controlled by or fostering the interests of credit unions, including a central liquidity facility organized under state or federal law;

[J.] (10) engage in activities and programs as requested by any governmental unit;

[K.] (11) act as fiscal agent and receive payments on deposit accounts from a governmental unit;

[L.] (12) sell or offer to sell insurance to the same extent allowed by law to other state chartered lending institutions; [and]

(13) conduct a savings promotion raffle; and

[M.] (14) provide services to persons within the credit union's field of membership, including electronic funds transfers and the sale and negotiation of instruments, including money orders, traveler's checks and stored value cards.

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